Tuesday, July 15, 2008

Online ad rates slid 14% since January

The average online advertising rate dropped 14.2% in the first six months of the year, according to a new industry survey.

Demonstrating that even interactive advertising is not immune to the deterioration of the economy, PubMatic, a company which helps publishers optimize their revenues, reports that the average rate for 1,000 ad impressions fell to 36 cents in June from 42 cents in January.

PubMatic says its survey is based on the prices realized by the 4,000 publishers it assists in getting the most revenue for their available ad inventory. The company has been publishing this survey since the first of the year and, in the absence of any other similar ongoing report, the data gives a sense of the direction of the market.

And the direction in the second quarter of the year was down. After climbing in the first three months of the year, ad rates fell sharply in April and continued to deteriorate in May and June, according to the survey.

PubMatic tracks rates according to the volume of traffic at websites. As you can see in the table below, sites with the lightest volume of traffic average higher rates than larger ones.

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About Me

Alan D. Mutter is perhaps the only CEO in Silicon Valley who knows how to set type one letter at a time.
Mutter began his career as a newspaper columnist and editor at the Chicago Daily News and later rose to City Editor of the Chicago Sun-Times. In 1984, he became No. 2 editor of the San Francisco Chronicle.
He left the newspaper business in 1988 to join InterMedia Partners, a start-up that became one of the largest cable-TV companies in the U.S.
Mutter was the COO of InterMedia when he moved to Silicon Valley in 1996 to join the first of the three start-up companies he led as CEO.
The companies he headed were a pioneering Internet service provider and two enterprise-software companies.
Mutter now is a consultant specializing in corporate initiatives and new media ventures involving journalism and technology. He ordinarily does not write about clients or subjects that will affect their interests. In the rare event he does, this will be fully disclosed.
Mutter also is on the adjunct faculty of the Graduate School of Journalism at the University of California at Berkeley.